
It’s nothing, except sheer failure of system that the inflation is getting out of control. Though the inflation figures declared by the government doesn’t depict the real time situation; a consumer can give better insight as to what level the cost of living has increased in the recent past.
Like an Embarrassed cat scratching the pillar central bank beating the bush of Repo rate and reverse repo rate. Every time there is a spurt in inflation the only measure central bank finds; is to conveniently increase the benchmark rates thus pushing the borrowers in huffy puffy. I’m sure that except tempering the benchmark rates there might be other ways and means to control the inflation which the governing body should explore.
It has been nine such occasions when the central bank has increased the benchmark rates and on most of such occasions the financial institutions has passed on the hike to there customers.
I’ve came across many such cases wherein persons talking home loan at the start of financial year 2008, today have the same debt liability even after paying the EMI for three full years. Thanks to the increasing lending rate, borrowers are becoming scapegoat and paying the cost of economic growth and inefficiencies of government machinery to tackle inflation.
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